Minmetal Land’s five month contracted sales soars 400% to RMB2.1bn

The developer plans to construct 1.79mn sq.m GFA this year, most of which are to be launched in the second half of the year.

Minmetals Land Limited (“Minmetals Land”) said on Thursday its contracted sales for the first five months of 2011 grew over 400% YoY to RMB2.1 billion, while contracted GFA sold amounted to approximately 239,000 sq.m. The average selling price during the reported period reached approximately RMB8,800 per sq.m., represented an increase of over 6% YoY.

Contracted sales in revenue and in GFA from May 2011 reached approximately RMB290 million and 39,000 sq.m. respectively while the YTD contracted sales reached approximately 36% of the full year contracted sales target. As most of the Company’s projects will be launched in the second half of the year, the management has great confidence in reaching the full year contracted sales target. There will be approximately 1.79 million sq. m GFA planned for construction this year in which GFA newly added into construction and completion will be 1.27 million sq.m. and 0.77 million sq.m. respectively, according to a Minmetal Land report.

The Company has a solid financial position at present with cash on hand over HK$3.3 billion. A CAPEX of over HK$5 billion has been planned in 2011FY for replenishment of new landbank about one to two millions sq.m. GFA, which focus in outskirt areas of tier-1 cities and core cities of tier-2 and tier-3 cities in the PRC.